CBIRC published interim measures for supervision and management of financial leasing companies, along with questions and answers (Q&As) related to the measures. The interim measures clarify the business scope, scope of lease items, and prohibited businesses or activities of the financial leasing companies. The measure shall be implemented from the date of issuance. Additionally, CBIRC issued provisions on implementation procedures of administrative licensing for financial institutions supervised and managed by CBIRC. The provisions cover main procedural issues involved in the process of administrative licensing. The provisions shall come into force as of July 01, 2020.
The interim measures require that the financial leasing companies improve corporate governance, internal control, risk management, and related-party transactions. It strengthens the constraints of regulatory indicators. Some new prudential supervision indicators have been set up, including the proportion of financial leasing assets, fixed income securities investment, and business concentration to promote financial leasing companies to focus on their main businesses and enhance their risk prevention and control capabilities. The measures also set out provisions related to supervision, administration, and legal responsibilities. In the next step, CBIRC will focus to implement the measures and strengthen supervision and guidance.
Related Links (in Chinese and English)
- Notification on Interim Measures
- Notification on Provisions
- Interim Measures
- Q&As on Interim Measures
Effective Date: Date of Issuance (Interim Measures) and July 01, 2020 (Provisions)
Keywords: Asia Pacific, China, Banking, Insurance, Leasing, Financial Leasing, Administrative Licensing, Q&A, CBIRC
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